Asia stocks trade mostly lower on Friday, tracking the Wall Street decline, as renewed concerns over US regional banks and trade tensions weighed on sentiment. Investors also watched rising geopolitical risks, with Trump warning that the US is “in a trade war now” and threatening further tariffs on China. The third week of the US government shutdown added further uncertainty, delaying key economic data and contributing to a choppy market environment. President Trump announced Thursday plans to meet Russian President Vladimir Putin in Budapest, Hungary, to discuss ending the war in Ukraine, following what he called a "very productive call" with Putin. Silver hovered all-time highs above $54 per ounce on Friday and was poised to gain about 8% for the week. Gold climbed to around $4,360 per ounce on Friday, climbing back toward the fresh record it set earlier and on track for a sharp weekly advance, the strongest since March 2020. South Korea’s seasonally adjusted unemployment rate edged down to 2.5% in September 2025 from 2.6% in August, returning to July’s level. Japan ( NKY:IND ) fell 1.38% to below 47,800, while the broader Topix Index slipped 0.8% to 3,177 on Friday, ending a two-day winning streak. The Japanese yen firmed to around 150.3 per dollar on Friday, nearing two-week highs. Bank of Japan Governor Kazuo Ueda said Thursday the central bank will closely examine a range of data—including insights gathered during his Washington visit—before deciding whether to raise interest rates in October. On the domestic front, Japan’s two major political parties, the Liberal Democratic Party and the Constitutional Democratic Party, have reached a broad agreement to hold a parliamentary vote on October 21 to select the next prime minister, according to Kyodo News. China ( SHCOMP ) fell 1.17% to below 3,890, while the Shenzhen Component sank 1.9% to 12,840 on Friday, with mainland shares poised to end the week lower as escalating US-China trade tensions weighed on sentiment. In the latest update, China accused the US of exaggerating its rare earth export controls, calling the resulting “panic” unnecessary while signaling openness to trade talks. Traders remain cautious ahead of China’s fourth plenum (Oct. 20–23), where the 2026–2030 five-year plan will be unveiled. Markets are also bracing for upcoming data in China: September industrial output, retail sales, Q3 GDP, and a monthly fixing on LPR. Hong Kong ( HSI ) fell 1.76% to 25,540 in early Friday deals, down for the second day as all sectors retreated. India ( SENSEX ) rose 0.43% The Indian rupee hovered around 88 per USD on Friday, trading sideways near four-week highs, but poised for its strongest weekly gain since late June. The International Monetary Fund revised Asia’s economic growth forecast upward on Thursday to 4.5% in 2025, an increase of 0.6 percentage points from its estimate in April, though slowing from 4.6% last year. Meanwhile, investors weighed mixed signals in US-India trade developments. Australia ( AS51 ) fell 0.81% to below 9,035 in early Friday trading, retreating from the prior session's record high, as losses in energy, tech shares, and miners offset gains in gold stocks. The Australian dollar weakened to around $0.647 on Friday, extending losses from the previous session. In the U.S. on Thursday, all three major indexes ended lower as worries over bad loans at regional banks and persistent US-China trade tensions weighed on sentiment. U.S. stock futures edged lower on Friday as concerns over bad loans at regional banks pressured sentiment: Dow -0.32% ; S&P 500 -0.45% ; Nasdaq -0.48% . Currencies: ( JPY:USD ), ( CNY:USD ), ( AUD:USD ), ( INR:USD ), ( HKD:USD ), ( NZD:USD ). More on Asia: Australia jobless rate rises to 4.5% in Sept; employment growth misses estimates China CPI falls beyond forecast amid steeper food price; PPI deflation continues for 36th month China's exports surge to six-month high, driving September trade surplus to $90.45B Stock index futures rebound as Trump downplays China rift Japan's producer prices rises more than expected in September to 2.7%
